Crazy idea?? Buy a home before BK 1yr from now

[S2008]

This is what I have in mind. Wake me up sombody if I am day dreaming.

We have two homes, both negative equity. Primary residence -70K and Rental home -80K. We plan to file BK in about 6 month to a year from now (prefer ch7 but may not qualify due to high income).

From purely financial perspective, I know we're better off surrendering both homes. However, the emotional toll would be huge on my family to surrender our primary residence. The rental can go to the bank.

So, we live near a very desirable area with excellent school district. I thought it would be a good idea if we can buy a larger home in that area from an owner that is desparate to sell. Bank won't lend us any money as we have too much debt and two homes to our names already. So, I'm searching for owner-financed or lease-to-own kind of deal.

I'm not sure how owner-financed or lease-to-own property is treated in BK?
Can we choose to keep the new house and surrender our current two houses?
We don't mind paying a bit over market value for the new home due to the excellent area and excellent long term value of homes in that area? I thought this option is better than choosing to keep our current home even if we are already -70K in the hole.

Any ideas? Sorry for the rambling . . .

[soleprop]

personally it gives me a bad gut feeling but i'm no expert.

[Flamingo]

Anytime there is pre-BK planning like this where you have to question big financial moves, I suggest you discuss this with an attorney before you get yourself in hot water. If you dissect your post with the information you provided, your high debt and owning/paying on two other properties would work against you getting any kind of clearance for any owner/financed or owner/rent-to-buy property as your credit reports will show all the debt and the high risk to any lender.

[keepmine]

If, the owner does not properly perfect the lein-that is record it properly the trustee can snatch that home away from both of you.
Part of a fresh start that bk brings is, the opportunity to make good decisions. Paying more than the market rate for a new home and even considering staying in a home with a large negative equity means you are not learning any lessons.

[ssdsco]

This is what I have in mind. Wake me up sombody if I am day dreaming.

We have two homes, both negative equity. Primary residence -70K and Rental home -80K. We plan to file BK in about 6 month to a year from now (prefer ch7 but may not qualify due to high income).

From purely financial perspective, I know we're better off surrendering both homes. However, the emotional toll would be huge on my family to surrender our primary residence. The rental can go to the bank.

So, we live near a very desirable area with excellent school district. I thought it would be a good idea if we can buy a larger home in that area from an owner that is desparate to sell. Bank won't lend us any money as we have too much debt and two homes to our names already. So, I'm searching for owner-financed or lease-to-own kind of deal.

I'm not sure how owner-financed or lease-to-own property is treated in BK?
Can we choose to keep the new house and surrender our current two houses?
We don't mind paying a bit over market value for the new home due to the excellent area and excellent long term value of homes in that area? I thought this option is better than choosing to keep our current home even if we are already -70K in the hole.

Any ideas? Sorry for the rambling . . .